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The Communications Minister Ravi Shankar Prasad informed Lok Sabha today, 10th March 2016, that BSNL has a debt of Rs. 7,666 crore and for MTNL a debt of Rs. 13,530 crore. He also mentioned that these debts have arisen due to the purchase of spectrum. BSNL was compelled to pay Rs. 18,500 crore for spectrum, both BWA and 3G Spectrum and MTNL Rs. 11,097 for the same spectrum. BSNL has returned the BWA spectrum, but the amount of more than Rs.6,600 crore is yet to be paid back by government. For purchasing the spectrum the PSUs took the above loans.

What the government should do is to refund the charges for spectrum which has been returned already by BSNL as also Rs. 1,250 crore from USOF which is pending payment for more than two years.

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Department of Defence is expected to hand over the extra spectrum in 1700-2000 Mhzband to DOT within three months, after DOT set up an exclusive defence network for its communication services. This issue has been pending for many years.

The vacated spectrum can be auctioned to the telecom companies for additional spectrum for providing services.

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At last the government has finally decided to hold the auction for 2G and 3G spectrum in February 2015. It has also agreed to hold the auction together as demanded by the private companies, instead of its own decision to hold the auction separately, which would have got more funds to the government.

As per the Cabinet decision, spectrum in 800 MHz, 900 MHz and 1800 MHz will be put to action. The reserve price for the same are fixed at Rs. 3,646 crore, Rs. 3,980 crore and Rs. 2,191 crore respectively. According to the reports, the government is expected to get between Rs. 64,000 crore and Rs. 80,000 crore.

The payment may be in installment and the government is expected to get at least Rs. 16,000 crore in this financial year.

The pressure put by the private telecom companies and MNCs that more spectrum should be available for auction is having results. The DoT has prepared a Cabinet Note on the auction of spectrum, which will be first sent to the Defence and Finance Ministries for approval before submitting to the Cabinet. The reports indicate that there will be 5MHz in the 2100 MHz band across 17 out of 22 telecom circles for auction.

It is understood that some more spectrum will be released by the Defence for allocation for auction as required by the private telcos. There was a demand from the Cellular Operations Association of India (COAI) that some spectrum should be released from BSNL, which the BSNL management has not so far agreed. But pressure will be mounting.

The requirements of the private companies have become more important for the government, than that of its own!

Rahul Khullar, TRAI Chairman, is pressurising the government to take over 1.2 Mhz spectrum with the BSNL putting the argument that the private telecom companies require more spectrum and the spectrum taking over from BSNL can be given for auction, which will give the government about Rs. 15,000 – Rs. 20,000 crore. The present TRAI Chairman has been acting as a spokesman of the private companies, and putting the same before the government.

We strongly protest against the proposal of the TRAI Chairman suggesting vacation of spectrum by BSNL. This will only further weaken BSNL. BSNL Management should immediately react and demand the government that no spectrum could be released.

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Communications Minister Ravi Shankar Prasad and Defence Minister Parikkar has met and discussed about the transfer of the spectrum with Defence to the DOT for auction and allotting of special spectrum for the Defence. However, It is reported that no agreement has been reached so far about the swapping of the spectrum.

Communications Minister stated that towers will be installed as per the present directions and if any compalint is there, it will be looked in to. ” According to DoT guidelines, if a mobile tower has 1 antenna, it should be installed at minimum distance of 20 metres from a house, in case of 2 antennas minimum distance should be 35 metres, for 4 antennas it should be 45 metres and for 6 antennas the minimum distance should be 55 metres. The guidelines say that there should be no building parallel to antenna and height of the antenna should be at least 5 metres above ground or roof top level.”

Certainly the anxiety of the people about radiation from the towers need be seriously considered.

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TRAI has recommended to DOT to get the 1.2 MHz spectrum in the 900 MHZ band surrendered by the BSNL for auction to private telecom operators. This will leave BSNL without sufficient premium 900 MHZ band of spectrum for its own operations and services.

We have earlier stated that the present TRAI is openly acting as an agent of the private companies. This recommendation once again confirms our assumption. We strongly protest against this fresh attack on BSNL.

The Forum is meeting on 28th to discuss this as also the implementation of Deloittee recommendations in Maharashtra with regard to reconstitution of SSAs.

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The Telecom Dispute Settlement Appellate tribunal (TDSAT) has allowed 3G roaming services to the private operators, even though they do not have spectrum licence for those circles. The TDSAT has also cancelled the penalty imposed on these private companies who were illegally providing roaming services in areas where they have no spectrum licence, by sharing agreements with other private companies who have spectrum in those circles.

We feel that this decision of the TDSAT is to be challenged since this is in violation of the licence conditions. Further this decision will give undue favour to the private companies comparing with BSNL, which was compelled to pay for all the circles in full.

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In a new development, the Telecom Commission has accepted the recommendations of the TRAI to allow the telecom companies to trade and share the spectrum allotted to them. Existing licencing condition does not allow spectrum sharing or trading. In fact, DOT has proceeded earlier for action against the private companies for sharing their spectrum with other private companies. The present decision will benefit the private players in a big way.

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It is reported that the next auction of the spectrum will be conducted in January 2014, as per the Secretary, Telecom, Shri M.F.Farooqui. This will be the third auction so far. It is expected to get about Rs. 11,000 crore from the auction according to the Telecom Secretary.
The minimum bid price etc. will be decided by the Empowered Group of Ministers (EGoM) on Spectrum.